Hunting PLC

Hunting reported first-half revenue of $497 million and EBITDA of $62.1 million, with EBITDA margin at 12%. EPS was $0.152 versus $0.196 a year earlier, and profit after tax was $24.8 million. Gross profit was described as fairly steady at 27%. Non-oil and gas revenue increased year over year to $38 million. Titan revenue increased 45% year over year, Subsea revenue increased 95% year over year, and international Titan sales were said to be up about 50% year over year. Management trimmed full-year EBITDA guidance to $138 million to $141 million from about $10 million higher previously because of the KOC tender delay. EBITDA margin guidance is 12% to 13%, CapEx is expected to be $40 million to $50 million in the second half, and free cash conversion is expected to remain at 50%.

Jim Johnson framed the quarter as proof that Hunting’s diversification strategy is working, with strength across Titan, Subsea, North America, and non-oil-and-gas end markets. His tone was upbeat and confident, especially on energy security, offshore activity, natural gas demand, and AI-driven power demand. He also stressed that the company is becoming less basin- and product-dependent, while continuing to pursue growth in markets like Guyana, Saudi Arabia, Argentina, Brazil, and decommissioning.

Bruce Ferguson emphasized the numbers behind the story: $62.1 million of first-half EBITDA, 12% EBITDA margin, $497 million of revenue, $38 million of non-oil-and-gas revenue, and EPS of $0.152. He said working capital rose by $60 million to $293 million in receivables, which pressured cash flow, but he expects that to unwind in the second half. He also noted net borrowings of $19 million, share buybacks of GBP 33 million, dividends of GBP 10 million, and a dividend increase of 13% to $0.07, while calling the balance sheet strong and low leverage.

Analysts focused on Titan expansion, pricing, utilization, and new geographies, and management said Titan is busy, pricing has held up despite tungsten costs rising 500% year over year, and a recent $16 million win from a new Gulf of America client showed continued momentum. Questions on Kuwait centered on competition and timing; management said the original large tender was canceled and will be retendered, but it remains uncertain who wins or when purchase orders resume. There were also questions on Subsea, decommissioning, and power generation, and management said Subsea is tracking well, decommissioning is driven by Enpro and Shell-related work, and Dearborn is being retooled to handle growing power-gen demand.